Movida Europe raises $350M with 9.7% notes due 2033
What's the deal? Movida Europe S.A., a Luxembourg subsidiary of Brazilian car rental and fleet management giant Movida Participações S.A., has issued $350M in 9.7% notes due 2033. The transaction priced on May 13, 2026, and closed on May 20.
Part of the proceeds funded a concurrent tender offer to repurchase $173M of Movida Europe's existing 7.85% senior notes due 2029. That tender launched on May 11 and settled on May 21.
A heavyweight syndicate of banks acted as global coordinators and initial purchasers, including Morgan StanleyDealroom has a profile for this one. Try Dealroom →, J.P. Morgan, Bradesco BBIDealroom has a profile for this one. Try Dealroom →, BNP ParibasDealroom has a profile for this one. Try Dealroom →, Santander, and UBS Investment Bank. Joint bookrunners included Itau BBA, MUFG, Natixis, XP Investimentos, and BTG Pactual. Cleary Gottlieb represented the banks.
Why now? Movida, one of Brazil's largest car rental and fleet management companies, is using the deal to refinance older, cheaper debt before it matures in 2029 — extending its maturity profile out to 2033. The move gives the company more breathing room on its debt schedule at a time when Latin American corporates are actively tapping international bond markets.
What could go wrong? The new notes carry a 9.7% coupon — nearly two percentage points higher than the 7.85% debt they partly replace. That means Movida is paying more to borrow, which could weigh on margins if operating conditions tighten.
Currency risk also looms. The notes are dollar-denominated, but Movida earns revenue in Brazilian reais. A sharp depreciation of the real against the dollar would make servicing this debt more expensive.
The signal: The deal reflects continued appetite among international investors for higher-yielding Latin American corporate debt, even at elevated coupon levels. For Movida, it signals confidence in its cash flows and a willingness to pay up for longer-dated funding — a trade-off many emerging-market borrowers are making as they prioritise balance sheet flexibility over near-term cost savings.
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